Calpine Allays
Concern Over Spat
With Bondholders

As natural-gas prices surged, power generator Calpine Corp. reassured investors Thursday that a dust-up with bondholders won't undermine its ability to buy fuel.

Calpine -- the nation's biggest consumer of natural gas, which it uses to power its electric plants -- on Wednesday confirmed that Bank of New York Co. was withholding access to roughly $400 million in cash from a major Calpine asset sale because some bondholders had complained about how proceeds were being reinvested. The money stemmed from Calpine's $1.05...